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Unformatted text preview: its close proximity to suppliers, Hayes Company maintains an ending inventory of raw materials equal to 10% of the next quarter's production requirements. The manufacture of each Kitchen-Mate requires 2 pounds of raw materials, and the expected cost per pound is $4. Illustration 20-7 shows the direct materials budget. Assume that the desired ending direct materials amount is 1,020 pounds for the fourth quarter of 2010. Illustration 20-7 Direct materials budget...
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- Fall '11
- Supply Chain Management, Imperial units, Conversion of units